The blockchain surveillance company PeckShield on Monday posted a threatening tweet to the cryptocurrency lending site Euler Finance with the simple message: Hello, you may want to take a look.
The firm advised Euler to check at a number of transactions that suggested an ongoing hack against Euler was taking place. PeckShield claims that hackers used Euler “in a frenzy of transactions” to steal about $197 million in cryptocurrency. BlockSec, a cryptography security company, also reported the hack.
According to a website that tracks crypto hacks and frauds, while this sounds like a lot of money and it is, it is only the 26th greatest cryptocurrency heist ever.
Euler replied to the tweet that they are aware and their team is currently coordinating with security personnel and law enforcement. When they have more information, they will let it know.
Given that the same individuals were exploiting some random protocol on [Binance Smart Chain] a few weeks ago and then the funds were deposited to Tornado [Cash], a well-known crypto mixing service that has been criticized by the American government for allegedly facilitating money laundering, ZachXBT, an independent researcher who studies cryptocurrency scams and hacks, wrote on Twitter that his is “almost surely” an attack by hacker attacks.
A number of Euler investors are lamenting what transpired in its own Discord and Telegram channels and asking what they should do next and if there is any chance.
Over 1.3 million dollars are gone. I never liked Michael on Twitter, but I wouldn’t even think of them releasing updates without prior notification or audits, one person said on Discord. I thought they were the most secure lending protocol.
They seemed to me to be the most secure lending protocol.” It’s good to know how I react when I lose more than $100,000 in an hour. Another investor on Discord stated, “Maybe it’s not about the money boys, it’s about what you learn along the journey.
According to Euler’s website, it has worked with six “leading security” companies. That obviously did not prevent hackers.
Upon the disclosure of the hack, the value of Euler’s cryptocurrency token dropped sharply.